Norwegian oil and fuel firm Aker BP has began manufacturing from the primary Ærfugl part 2 nicely within the Norwegian Sea – three years forward of the unique plan.
The Ærfugl area produces through Skarv FPSO, which is positioned roughly 210 km west of Sandnessjøen.
According to Aker BP, it is among the most worthwhile improvement initiatives on the Norwegian shelf with a break-even value of round $15 per barrel (transformed from fuel).
Kjetel Digre, SVP Operations & Asset Development in Aker BP, stated: “The acceleration of manufacturing from Ærfugl Phase 2 means elevated worth creation for the Ærfugl three way partnership, the provider business and the Norwegian society within the type of elevated revenues. Thus I’m more than happy to mark this milestone.
“However, the excellent news are offset by the truth that we face a world disaster that none of us have skilled earlier than. Investments and explorations actions offshore Norway are placed on maintain. Tens of 1000’s of workers in our business are at the moment in danger”.
As a response to the dramatic change available in the market state of affairs, Aker BP has stopped all non-sanctioned initiatives, together with the Hod redevelopment mission within the Valhall space which was nearly to be sanctioned previous to the dramatic turmoil.
“It is evident that the business’s proposal for short-term changes in Norway’s tax regime to enhance the business’s money move within the brief run – with out lowering the overall tax funds in the long term – will end in elevated exercise and new funding alternatives offshore Norway inside the subsequent 12 – 24 months”, added Digre.
Ine Dolve, VP Operations & Asset Development within the Skarv space, stated: “The Ærfugl area improvement is including 5 years lifetime extension to the Skarv FPSO and is a crucial a part of the realm improvement and worth creation within the space, although the profitability can be dramatically diminished within the present oil value setting“.
Remaining wells start-up in 2021
The Plan for Development and Operation (PDO) for each phases was permitted by the Ministry of Petroleum and Energy in April 2018. Phase 1, which develops the southern a part of the Ærfugl area, consists of three new wells and can start-up in late 2020.
Phase 2 consists of a further three wells within the northern a part of the sphere. The authentic plan for start-up was 2023.
Due to proceeded work to extend fuel capability on Skarv FPSO, the Ærfugl mission group optimized the part 2 scope and recognized present infrastructure to host the primary “part 2 nicely”.
In early November 2019, operator Aker BP and companions Equinor, Wintershall Dea, and PGNiG permitted the ultimate funding determination (DG3) for Ærfugl Phase 2, which led to Wednesday’s announcement.
The remaining two “part 2 wells” will come on stream in 2021.
Tom Storvik, Project Manager for the Ærfugl Field Development, stated: “Now we see glorious deliveries from the alliances for the Ærfugl improvement. In addition, the collaboration with Baker Hughes to allow the present xmas timber to be reused at Ærfugl part 2 has been key to allow the accelerated part 2 start-up”.
The Ærfugl reservoir is principally a fuel reservoir that extends over 60 km and is 2-Three km huge. The mission holds a complete of round 300 million barrels of oil equal.
Total funding prices for the Ærfugl mission – part 1 and a couple of – are round NOK eight billion ($754.9 million).
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